It is hard to determine expected moves going into earnings. Some assume buying call options ahead of earnings reports will give them an edge due to speculation in the market, assuming they can ride the volatility increase. In this segment the tastytrade research team examines this theory to see if an increase in volatility correlated to an increase in options prices with a binary event like earnings. The study observed the expected move during the 5 days prior to the earnings announcement for DAL, GOOG, GS, NFLX. Watch this segment of “Market Measures” with Tom Sosnoff and Tony Battista to see the results of the study and hear the insight from Tom and Tony.
A Research Study Into Why You Shouldn't Buy Options Before Earnings
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